This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Stocks Fall After Giving Up Early Gains
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Stocks Fall After Giving Up Early Gains
Markets

Stocks Fall After Giving Up Early Gains

Editorial Board Published January 20, 2022
Share
Stocks Fall After Giving Up Early Gains
SHARE

U.S. stocks fell on Thursday, as a late-afternoon selloff erased what had been an early rally, showing that investors are still concerned about the prospects of tightening monetary policy and slowing growth.

The Nasdaq Composite Index dropped 186.23 points, or 1.3%, to 14154.02, a day after a tech selloff dragged down indexes. The index fell more than 3% from its intraday high to its low. It is now down nearly 12% from its November high.

The Dow Jones Industrial Average lost 313.26 points, or 0.9%, to 34715.39. It was the index’s fifth consecutive down session, its longest such streak since September. The blue-chip index has fallen in nine of the past 11 sessions. The S&P 500 dropped 50.03 points, or 1.1%, to 4482.73.

The afternoon selloff wasn’t surprising, said Sameer Samana, a strategist at Wells Fargo Investment Institute. Even after the recent pullback, selloffs usually need time to find a true bottom. Moreover, on a day like Thursday, it’s likely some traders decided to sell into the early gains in order to cut some of their losses from the prior selloffs.

“This is just how markets bottom,” he said. “It just takes a few days.”

Indeed, the choppy trading shows investors are trying to gauge how far this selloff will go. On Wednesday, the ragged, weekslong selloff pushed the Nasdaq down more than 10% below its record close, putting it in correction territory. Those kinds of plateaus usually bring in bargain hunters, but on its own is no indication a selloff is over, observers say.

“Whenever we see equities churn lower, as they have this year, we are mindful that the risk of a meltdown grows rather than diminishes,” said Nicholas Colas, the founder of analytics firm DataTrek Research.

Faced with the prospect of multiple interest-rate rises, cooling growth and inflation at multidecade highs, investors have been reassessing the pandemic-era playbook that focused on outsize gains for growth stocks, such as in tech. In recent sessions, investors have rotated into sectors expected to perform better in the coming year, such as financials and energy. 

Investors are selling government bonds in anticipation of higher interest rates, pushing up yields, and in the process, pressuring tech companies, whose future earnings become less attractive when compared with bonds with rising yields.

“I don’t see a whole lot in the market that is really alarming me. There is no one out there saying ‘run for the hills,’ but there are those saying they are going to take off risk and reposition to other areas of the market,” said Kara Murphy, chief investment officer of Kestra Holdings.

The technology-heavy Nasdaq Composite shed 1.1% on Wednesday.

Photo: BRENDAN MCDERMID/REUTERS

The day brought a spate of economics reports. Weekly jobless claims jumped to 286,000 from 231,000 as businesses contend with Omicron-related disruptions. Existing-home sales in December fell 7.1% from a year ago, though home sales for 2021 were at a 15-year high.

The yield on the 10-year U.S. Treasury note rose to 1.833%, adding to steady gains in recent weeks. Benchmark German bund yields fell further into negative territory, a day after they briefly turned positive. The yield on the 10-year German government bond slipped to minus 0.015% Thursday from minus 0.014% Wednesday.

Among U.S. equities, shares of Peloton Interactive fell 24% to $24.22 after CNBC reported the company is pausing production of its bikes and other connected-fitness products amid lower demand from consumers.

Dow component Travelers Cos. rose 3.2% to $165.18 after reporting record net income for the fourth quarter. American Airlines Group fell 3.2% to $16.76 even after the carrier said it had trimmed its losses.

Shares of Netflix fell 19% after the market close, after the company reported 8.3 million subscribers joined its platform in the latest quarter, slightly missing its own forecast. Investors were more focused on that number and the company’s forecast for the current quarter, which projected slower subscriber growth, than the actual earnings, which topped analyst forecasts.

Hong Kong-listed Chinese stocks jumped after an interest-rate cut by China’s central bank lifted shares of property developers and tech giants. The Hang Seng Index rose 3.4%, while mainland China’s Shanghai Composite Index edged down 0.1%. Elsewhere in Asia, the Nikkei 225 rose 1.1%. The pan-continental Stoxx Europe 600 edged up 0.5%. 

U.S. home prices hit an all-time high in 2021, but those increases are expected to slow in 2022 thanks to a number of economic factors. Here’s what’s driving the housing market and what that could mean for prospective buyers and sellers. Photo: George Frey/Bloomberg News

U.S. crude-oil futures fell 0.1% to $86.90 a barrel, but like equities were volatile during the day. This follows a rally partly driven by the potential for supply disruptions in Russia and the Middle East. On Wednesday, crude futures hit their highest level since October 2014. Observers say the next big target is $100 a barrel.

Write to Will Horner at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Netflix stock plunges as subscriber growth worries deepen Netflix stock plunges as subscriber growth worries deepen
Next Article ESPN will not send reporters to Beijing Olympics ESPN will not send reporters to Beijing Olympics

Editor's Pick

Alyssa Farah Griffin: ‘The View’ Co-Host is Pregnant With Child #1!

Alyssa Farah Griffin: ‘The View’ Co-Host is Pregnant With Child #1!

Studying Time: 3 minutes The View co-host Alyssa Farah Griffin is pregnant! On ‘The View,’ Alyssa Farah Griffin breaks the…

By Editorial Board 3 Min Read
Melissa Rycroft Admits to Actually “Struggling” in Wake of DUI Arrest
Melissa Rycroft Admits to Actually “Struggling” in Wake of DUI Arrest

Studying Time: 3 minutes Melissa Rycroft is in a darkish place proper…

4 Min Read
Man fatally shot throughout argument over lady at gathering at Tuscaloosa storage unit; suspect jailed
Man fatally shot throughout argument over lady at gathering at Tuscaloosa storage unit; suspect jailed

One individual was killed and a number of other others injured in…

2 Min Read

Oponion

Lufthansa to chop 1000’s of jobs because it seeks to spice up profitability

Lufthansa to chop 1000’s of jobs because it seeks to spice up profitability

Former NSA hacker David Kennedy joins 'Mornings with Maria' to…

September 29, 2025

5 Greatest David Beckham Colognes for You to Sport in 2025 | Fashion

We independently consider all really useful…

March 5, 2025

Ohio Senate candidate rips ‘wicked’ politicians for Springfield migrant disaster: Residents ‘pay the value’

Plus particular entry to pick out…

September 15, 2024

Dueling mass rallies planned for Supreme Court hearing in pivotal abortion case

Expect plenty of opinions Wednesday at…

November 29, 2021

New DraftKings promo code: Get $200 bonus + large NFL Sunday Ticket low cost this weekend

The return of soccer has resulted…

August 16, 2025

You Might Also Like

Jamie Dimon warns of main market threat in subsequent few years
Markets

Jamie Dimon warns of main market threat in subsequent few years

CPA and market analyst Dan Geltrude joins ‘Mornings with Maria’ to interrupt down the record-setting rally fueled by synthetic intelligence,…

4 Min Read
Meme inventory mania 2.0
Markets

Meme inventory mania 2.0

Pacer ETFs President Sean O’Hara discusses the advantages of ETFs and lays out his favourite investments on ‘The Claman Countdown.’…

4 Min Read
Traders have fun Japan’s ‘Iron Lady’ election win
Markets

Traders have fun Japan’s ‘Iron Lady’ election win

Federated Hermes CIO Stephen Auth weighs in on Japan's first elected feminine prime minister and provides an concept on what…

3 Min Read
Tesla teases Tuesday announcement with social media movies
Markets

Tesla teases Tuesday announcement with social media movies

Niles Funding Administration founder and portfolio Dan Niles discusses Tesla’s potential $1 trillion compensation plan for Elon Musk on ‘The…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?